Rights of Vietnam Oil and Gas Group in Business

To be specific, according to Article 10 of the Charter on Organization and Operation of Vietnam Oil and Gas Group issued together with Decree 07/2018/ND-CP, in its business activities, PVN has the following rights:

1. Proactively organize production, business, and coordination plans for production and business, organize management apparatus according to business requirements and ensure efficient business operations.

2. Engage in registered industries and trades and other industries and trades not prohibited by law in accordance with the law and the Charter on Organization and Operation of Vietnam Oil and Gas Group; expand business scale according to the capacity and demand of the domestic and international markets in accordance with the Charter on Organization and Operation of Vietnam Oil and Gas Group and the law.

3. Seek domestic and international markets and customers and enter into contracts.

4. Determine purchase and sale prices for products and services based on market prices and in accordance with legal regulations on prices, except for public utility products and services and products and services priced by the State.

5. Decide on the establishment, reorganization, ownership conversion, dissolution, and request for bankruptcy, capital contribution, holding, increasing, decreasing capital for subsidiaries according to the legal procedures and decentralization in Chapters III and IV of the Charter on Organization and Operation of Vietnam Oil and Gas Group.

6. Decide on investment of capital/contribution, holding, increasing/decreasing capital, selling/withdrawing capital, increasing/decreasing ownership ratio of PVN in another enterprise according to the legal procedures and decentralization in Chapters III and IV of the Charter on Organization and Operation of Vietnam Oil and Gas Group.

7. Decide on the establishment, reorganization, dissolution of branches, representative offices, dependent accounting units, scientific research units, and training units after obtaining approval from competent authorities in accordance with the law and decentralization in Chapters III and IV of the Charter on Organization and Operation of Vietnam Oil and Gas Group.

8. Decide on investment projects according to the law and decentralization in Chapters III and IV of the Charter on Organization and Operation of Vietnam Oil and Gas Group; use PVN's capital and assets to joint venture, associate, and contribute capital to other enterprises according to the law.

9. Decide on loan contracts, lending, purchase and sale of assets, and other economic contracts according to the law and decentralization in Chapters III and IV of the Charter on Organization and Operation of Vietnam Oil and Gas Group.

10. Recruit, sign labor contracts; arrange, use, train, reward, discipline, terminate labor contracts; choose forms of payment and reward for employees based on production and business efficiency, State regulations and labor laws, wages, remunerations, and regulations in Clause 2, Article 14 of the Charter on Organization and Operation of Vietnam Oil and Gas Group.

11. Develop and issue internal management regulations, standards, processes, technical-economic norms, labor norms, wage unit prices, and other costs on the basis of ensuring business efficiency and compliance with the law.

12. Enjoy preferential policies on investment and reinvestment; exercise ownership rights over the portion of PVN's capital invested in subsidiaries and associated companies in accordance with the law.

13. Have other production and business rights according to market demands, in compliance with the law and the Charter on Organization and Operation of Vietnam Oil and Gas Group.

See also: Decree 07/2018/ND-CP effective January 10, 2018.

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